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Top 2 Profitable Stocks to Buy Right Now (NVDA, MU)
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Key Takeaways
NVIDIA and Micron emerged as top picks based on strong profitability and screening criteria.
NVDA posted a 12-month net profit margin of 55.6%, signaling strong revenue efficiency.
Micron showed a 41.5% net margin, reflecting solid profitability in memory and storage products.
Investors should prioritize companies that deliver strong returns after accounting for all operating and non-operating expenses. Consequently, businesses with consistent profits tend to be more appealing than those running at a loss. To evaluate profitability, investors can use accounting ratios that highlight the most common measures of a company’s bottom-line performance.
On that note, NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) stand out as top profitable picks, supported by strong net income ratios and considerable upside potential.
Net Income Ratio: What It Means
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Screening Parameters Using Research Wizard:
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 20.
Here are two of the 20 stocks that qualified for the screening:
View the Zacks #1 Rank List
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Top 2 Profitable Stocks to Buy Right Now (NVDA, MU)
Key Takeaways
Investors should prioritize companies that deliver strong returns after accounting for all operating and non-operating expenses. Consequently, businesses with consistent profits tend to be more appealing than those running at a loss. To evaluate profitability, investors can use accounting ratios that highlight the most common measures of a company’s bottom-line performance.
On that note, NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) stand out as top profitable picks, supported by strong net income ratios and considerable upside potential.
Net Income Ratio: What It Means
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Screening Parameters Using Research Wizard:
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank Equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 20.
Here are two of the 20 stocks that qualified for the screening:
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute and networking solutions (read more: Palantir vs. NVIDIA: Which AI Stock Offers the Better Valuation?).
The 12-month net profit margin of NVDA is 55.6% (read more: NVIDIA vs. Broadcom: The Smarter AI Stock to Buy for March 2026).
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 41.5%.